TLDR? There are key underlying psychological reasons for individuals’ behaviour. Which causes them to buy high and sell low. These decisions are sometimes driven by emotions, which affect how we think. Knowing how this occurs helps to prevent common investing pitfalls.
Hey everyone, hope you enjoyed our post last week on the Pareto Principle. And I hope it helped you to think about how you can decide on where to prioritize your time accordingly. After all, we are all living in a modern world that has a tendency to starve us of our time.
Today, we’re going to talk about a really interesting phenomenon. From time to time, something strange occurs to investors. It’s almost as if all mental faculties that are normally supposed to be in place are thrown out the window. Wondering what it is? It is the tendency to buy high and sell low as investors.